Preheat the air fryer to 400°F (200°C) for 5 minutes.
In a shallow bowl, combine the breadcrumbs, grated Parmesan cheese, garlic powder, paprika, salt, and black pepper. Mix well.
In another shallow bowl, whisk together the eggs and water until fully combined.
Pat the tilapia fillets dry with paper towels.
Dip each tilapia fillet first into the egg mixture, allowing excess to drip off, then coat thoroughly with the breadcrumb mixture. Press gently to adhere the coating.
Lightly brush both sides of each coated fillet with olive oil to help crisp the coating.
Place the fillets in a single layer in the air fryer basket, making sure they do not overlap. Cook in batches if necessary.
Air fry the tilapia fillets at 400°F (200°C) for 10 to 12 minutes, flipping halfway through, until the coating is golden brown and the fish flakes easily with a fork.
Carefully remove the tilapia from the air fryer and serve immediately with your favorite sides.